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View Full Version : How do I recompute fixed costa using the high-low method


trouble4me
Dec 1, 2013, 05:24 PM
Months meals total cost
July 3500 20,500
August 4000 22,600
September 4200 23,350
October 4600 24,500
November 4700 25,000
December 4900 26,000
recomputed fixed cost, variable costs, and BEP using the information

rehmanvohra
Dec 3, 2013, 09:37 AM
High December 4900 26,000
Low July 3500 20,500
Difference 1400 5500
Variable rate 3.92856 per meal

Total costs 26000
Less variable 4900 x 3.92856 = 19250
Fixed costs 6750

BEP can not be determined without sales revenue and contribution margin.